6 differences between insurance policy riders and add-ons

When you buy an insurance policy, be it health, life, vehicle or travel, it is possible that you realise with time and age that your policy is not as comprehensive as it should be, or that you need a specific coverage that is missing in the plan. Riders and add-ons are basically extra benefits and features that you can tag on to your existing or basic insurance policy. While both help enhance the existing coverage, riders and addons are not terms that can be used interchangeably, and are very different in form and function. Here’s how.

Rider vs add-on

What is a rider?
Rider is an extra or additional insurance benefit that you can buy along with your base policy to expand its coverage. For instance, if you have a basic health plan that has a room rent sub-limit, you can opt for a room rent waiver rider. This can either waive the room rent limit altogether or increase the cap. You can get this benefit by paying extra money. Every insurer has a set of rider options that they offer with specific plans to widen the coverage of a plan.

What is an add-on cover?

An add-on is a separate insurance policy, not just a tagged benefit, that is added to your base policy to make it more comprehensive. For instance, you could buy a separate baggage loss or trip delay cover with your regular travel plan to expand its benefits. These covers are usually generic and can be attached to any policy in the insurer’s bouquet.